Establishing a Robust Credit Analysis System to Support Underwriting for Surety Insurance Products
Xceedance subject matter experts established a robust credit analysis system to enable a streamlined underwriting process for surety insurance products, boosting the insurer’s underwriting capabilities and enabling them to capitalize on a more comprehensive array of business opportunities.
A global insurer required an effective credit analysis system to optimize the underwriting process for their surety insurance offerings, ensuring that the system was adaptable to different geographic regions. For example, while the US region had more sound surety regulations and was more project-focused with more data availability, other regions worked solely on financial statements and had limited recourse options. The insurer sought a partner with a deep understanding of surety insurance and a sound knowledge of the construction sector, especially the relevant accounting practices and financial ratios used across different geographies.
Xceedance formed a team of highly skilled domain experts with proficiency in surety insurance and financial analysis. The team worked closely with the insurer to develop comprehensive templates to assess the qualitative and quantitative credit risks with a focus on the construction sector. The templates were customized for different geographies. The underwriter decision matrices were also converted into standardized financial models to facilitate peer portfolio comparisons.
Xceedance built enhanced credit risk assessment capabilities, which resulted in faster quote response times, cost and time savings, standardized procedures, and allowed the insurer to pursue new business opportunities.